CDK Cyber Attack: What Dealerships Need to Know About Insurance Claims

The recent CDK cyber attack, which affected 15,000 car dealerships, is a powerful reminder of how vulnerable businesses are to cyber threats. This attack hit CDK, a third-party platform provider for automotive dealerships, disrupting their operations for nearly a week. Dealerships were unable to sell or service cars, leading to significant financial losses.

Now that the dust has settled, many dealerships are looking to insurance for coverage. But there's a catch: not all policies cover third-party hacks, and business interruption insurance may not apply unless physical damage occurred. Cyber liability insurance is crucial, but it often comes with limits, exclusions, and complex layers of coverage.

With cyber threats rising, it’s essential to review your policies. Is your coverage sufficient? Are you protected if a third-party service gets hacked? Understanding these details can save you from costly surprises when disaster strikes.

Need expert advice on your coverage options? Get a one-on-one consultation at ActualHuman.com to make sure you’re protected.